Charlotte Habitat Group Remodels Homes In Troubled Neighborhoods

The Charlotte Observer reported Sunday that the reason is the nation's mortgage crisis has made buying and renovating cheaper than building, even though Habitat uses volunteer labor.

"We're getting them as low as $30,000, knowing we'll put in $10,000 of repairs," said Meg Robertson, an associate director with Habitat. "To build a new one is over $60,000 we're $20,000 to $30,000 cheaper per home."

And Habitat expects to be reimbursed for most of the costs through a U.S. Department of Housing and Urban Development program meant to stabilize subdivisions where foreclosures are a problem.

Charlotte had more than 8,000 foreclosures last year, and filings are up this year by 30 percent. Many involve newer starter-home communities, where houses less than 5 years old now are boarded up.

Habitat will focus its new Neighborhood Revitalization Initiative in 11 such neighborhoods. The homes will be refurbished and sold to working families on a fixed income who will pay no money down and no interest. Families must contribute 250 hours of volunteer labor.

"This is not a permanent change for Habitat," said Linda Blum, the agency's development director. "It's just trying to take advantage of market conditions to be good stewards of the donors' dollars.

"We're not evicting anyone. We don't want it to get out that we're throwing people on the street. These homes are vacant."

Habitat has bought five homes from the Windy Ridge, Grass Meadows and Barrington subdivisions.

HUD is expected to give Charlotte about $5.4 million over the next 18 months to a partnership that includes Charlotte's Habitat, Charlotte-Mecklenburg Housing Partnership, Self-Help CDC and Charlotte Housing Authority. All have agreed to purchase vacant houses for resale.

In all, the partnership expects to buy, refurbish and be reimbursed for 110 vacant homes.

"This is a big deal for homeowners in these neighborhoods," said Stan Wilson, the city's housing services manager. "You've invested all your money in a home, and you've seen all these foreclosures around you. You see your value gone and your neighbors gone.

"This is a great opportunity for us to bring that value back and make the neighborhood what it used to be."